03 Community 2018 - Nutrient Advantage/media/Files/IPL/Sustainabili… · (SROI) As an...

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Community Engagement IPL SUSTAINABILITY REPORT 2018 COMMUNITY Community > Community Investment IPL understands that long term and meaningful relationships with the community are fundamental to maintaining our social licence to operate, particularly in the area of maintaining community safety. We also believe we have a responsibility to make a positive social and economic contribution to our local communities. As an international company with operations in many countries, we take a grass-roots approach to community relations. Community investment and engagement decisions are made locally, where community needs are best understood, and are guided by a Group-wide governance framework. We are committed to building long term and meaningful relationships with the communities in which we operate in accordance with our Value of Care for the Community & our Environment. We actively engage with community members and representatives of national and international charities, regulators, Governments and grass-roots community organisations including resident groups, councils, farmers, sporting clubs and environmental groups. We aim to have a positive impact by working closely with community representatives, providing local employment and selecting local suppliers wherever possible. We empower our people to engage with their local communities and seek to mitigate negative impacts and create positive perceptions and outcomes for our business. Our Sustainable Communities Policy defines our approach to community relations, including commitments to: • Listen to and work with the community; • Strive to be a valued corporate citizen; and • Respect our neighbours, their values and cultural heritage, and be considerate of them in carrying out our operations. Day-to-day responsibility for assessing our community impacts and implementing community engagement programs rests with local management at each of our sites, as our site managers best understand their needs and concerns. Local priorities are informed by our Community HSEC Standard, which sets our minimum requirements for engagement. Governance of our community investment programs is overseen by the Executive Team. Community Strategic Priorities We will continue to improve our approach to community engagement, including: • Continuing to develop a Group-wide approach to community relations and embedding principles of community engagement at business unit and site level • Understanding and working to address the impacts we have on our communities • Embedding the principles of our Community Investment Framework within the ongoing operations of our businesses and functions Key Challenges and Opportunities • Ensuring alignment of our community activities to our Principles for Giving across our global operations • Maintaining our social licence to operate with the inherent risks associated with chemical manufacture, storage and transport • Building our reputation as an employer of choice in the community > Social Return on Investment (SROI) This report is published as an interactive online report. Visit the website to access online features at www.incitecpivot.com.au/sustainability Community Safety

Transcript of 03 Community 2018 - Nutrient Advantage/media/Files/IPL/Sustainabili… · (SROI) As an...

Page 1: 03 Community 2018 - Nutrient Advantage/media/Files/IPL/Sustainabili… · (SROI) As an international company with operations in many countries, we take a grass -roots approach to

� Community

Engagement

IPL SUSTAINABILITY REPORT 2018 COMMUNITY

Community

> Community

Investment

IPL understands that long term and meaningful relationships with the community are fundamental to maintaining our social licence to operate, particularly in the area of maintaining community safety. We also believe we have a responsibility to make a positive social and economic contribution to our local communities. As an international company with operations in many countries, we take a grass-roots approach to community relations.

Community investment and engagement decisions are made locally, where community needs are best understood, and are guided by a Group-wide governance framework. We are committed to building long term and meaningful relationships with the communities in which we operate in accordance with our Value of Care for the Community & our Environment. We actively engage with community members and representatives of national and international charities, regulators, Governments and grass-roots community organisations including resident groups, councils, farmers, sporting clubs and environmental groups. We aim to have a positive impact by working closely with community representatives, providing local employment and selecting local suppliers wherever possible. We empower our people to engage with their local communities and seek to mitigate negative impacts and create positive perceptions and outcomes for our business. Our Sustainable Communities Policy defines our approach to community relations, including commitments to: • Listen to and work with the community; • Strive to be a valued corporate citizen; and • Respect our neighbours, their values and cultural heritage, and be considerate of them in carrying out our operations.

Day-to-day responsibility for assessing our community impacts and implementing community engagement programs rests with local management at each of our sites, as our site managers best understand their needs and concerns. Local priorities are informed by our Community HSEC Standard, which sets our minimum requirements for engagement. Governance of our community investment programs is overseen by the Executive Team.

Community

Strategic Priorities We will continue to improve our approach to community engagement, including: • Continuing to develop a Group-wide approach to community relations and embedding principles of community engagement at business unit and site level • Understanding and working to address the impacts we have on our communities • Embedding the principles of our Community Investment Framework within the ongoing operations of our businesses and functions

Key Challenges and Opportunities • Ensuring alignment of our community activities to our Principles for Giving across our global operations • Maintaining our social licence to operate with the inherent risks associated with chemical manufacture, storage and transport • Building our reputation as an employer of choice in the community

> Social Return on

Investment

(SROI)

This report is published as an interactive online report. Visit the website to access online features at www.incitecpivot.com.au/sustainability

� Community

Safety

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Community Engagement Community

IPL SUSTAINABILITY REPORT 2018 COMMUNITY

� Community

Engagement

Community

This report is published as an interactive online report. Visit the website to access online features at www.incitecpivot.com.au/sustainability

> Social Return on

Investment

(SROI)

As an international company with operations in many countries, we take a grass-roots approach to community engagement.

Many of our operational sites have community engagement programs in place to facilitate two-way communication between the site and the local community, both directly and through local community organisations. Some of the outcomes associated with these local site community engagement programs during 2018 include: • Our manufacturing site in Geelong, Australia conducts community meetings twice a year. Advertised through local letter box drops, the meetings are attended by site neighbours, including the North Shore Residents Group. During the meetings site representatives present data about the site, such as safety information and results of ongoing environmental monitoring. Community leaders are provided with the telephone numbers of key site employees and are able to notify them of issues if they arise.

The site sponsors an annual award for the top engineering graduate from Deakin University, and funds equipment for the annual Moorpanyal swim held by the North Shore Residents Group. The site has partnerships with Give Where You Live and GenU. In addition, employees volunteered and fundraised for Greening Australia, White Ribbon Day, and supported the Kids with Cancer Foundation with a team at the 2018 Geelong Port Chilli Chicken Wing Challenge. • Our manufacturing site in Portland, Australia holds community consultation group meetings which are advertised in the local newspaper. The agendas include updates on the company’s performance, upcoming projects, general discussion and a question time. Environment Protection Authorities officers, representatives from the Glenelg Shire Council, local residents and other industries are invited to attend. • Our explosives manufacturing site located in Cheyenne Wyoming, USA, has a long history of local community support. This year employees continued to focus on helping the underprivileged, running community safety events, such as the Annual Family Safety Day, and responding to local emergencies. Donations, sponsorships and time were given to support a wide range of local charities and causes, with a team of 10 employees from the site’s Emergency Response Team winning the 2018 Cheyenne Fire Truck Pull, which benefits Special Olympics Wyoming. • During 2018, our Dyno Nobel site in Moranbah, Queensland was a gold sponsor of both the Glencore Casa Grande charity Ball in Mount Isa and the Blackwater Rodeo. The site also supported Queensland’s premier touring country rugby team,

the Dyno Nobel Outback Barbarians, which gathers young players from outback communities in Australia with a focus on mental health for young men in those communities. The team is shown below.

The Moranbah site also continued to support the local community through participating in the Moranbah High Schools Careers Fair and implementing the ‘Big 5 for 5’ program which links our values of Zero Harm and Care for the Community and our Environment. Under this program, on-site work teams who complete 5 safety improvement initiatives earn a $500 donation from the site to a charity of their choice. • Our sites regularly participate in community forums, working with local representatives to ensure appropriate plans are in place to mitigate the impacts in case of an emergency. For example, our Big N Fertiliser Depot in Moree, Australia conducts an Emergency Response Simulation day annually.

In 2018, this day included the activation of the Emergency Response Plan (ERP) for the site, community and the surrounding area; ensuring that the public has access to the ERP and Community Safety Information Flyer at the Moree Library; ensuring that site neighbours’ details and contact information is up to date and correct; and distribution of the Community Safety Information Flyer. Staff members also attended the local

Aboriginal reserve, Stanley Village, and discussed the properties of chemicals at the site and safety responses in an emergency. On completion, the site hosted a BBQ and conducted a debriefing session. The local Police, Fire and Ambulance services also attend the annual Emergency Response Simulation day when possible. For more details, see Community Safety.

> Community

Investment

� Community

Safety

� Material issue

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IPL SUSTAINABILITY REPORT 2018 COMMUNITY

This report is published as an

interactive online report. Visit

the website to access online

features at

www.incitecpivot.com.au/

sustainability

In line with IPL’s site based Community Engagement strategy, our Graham, Kentucky (GRKY) team formalised its community program with the creation of the GRKY Programs, Events, Activities, Charities & Engagement (PEACE) Team in 2018. Although participating in several community support activities over the years, our Dyno Nobel Graham, Kentucky site employees were keen to develop a structured mission to help the community. In a great example of business improvement, HR Specialist Charity Franklin worked in partnership with the team as Teamwork Best Practice Champion to develop a program that both engages with the local community, whilst also improving our employees teamwork skills. Having raised money for a food bank organisation in the past which also leveraged IPL’s Dollar for Dollar Matching Community Investment program, Charity worked to serve the site team’s desire for a simple process and structured mission to enable them to contribute to the community whilst improving teamwork: through a common need to connect, contribute, and find a higher purpose.

“I am so proud to be a part of a company that supports and encourages employees to reach out into their communities to help those that need it,” said Charity.

“This year, our Graham site, with support of the Peace Team and Site Manager John Jones, was able to help provide shoes to school aged children in our county. This program, Happy Feet, works to provide name brand shoes to children that are unable to purchase shoes at all. They work with a local store to get the shoes at a discount to these children. What a great cause to support! We were blessed to be able to have some representatives from Happy Feet come out and speak a little about their program and accept our site’s donation to the cause,” said Charity. Members of the Graham, Kentucky site Peace Team are pictured to the right with representatives from Happy Feet.

IPL Responds to Indonesia Tsunami disaster

In late September 2018 a 7.5-magnitude earthquake and a resulting tsunami struck the large Indonesian island of Sulawesi causing widespread destruction. While the Company does not have any operational facilities in the disaster zone, the Dyno Nobel Asia Pacific (DNAP) leadership team worked closely with our Indonesian management team to understand the extent of loss and impact on our employees and their families, as several employees had homes in the affected area in Sulawesi. Andrew Gardner, DNAP Senior Vice President, Sales and Operations, quickly set up a Crisis Response Team led by Amsyah Sebayang, President Director Indonesia, and identified nine of our employees whose immediate family were impacted. Our priority was to support them and to provide financial assistance and essential supplies (medical, food and liquids) through the local management team. We also arranged EAP support for both the employees and their families.

Additional support was provided by one of our Indonesian operational supervisors who is an experienced disaster event volunteer and who flew to out to Palu, Sulawesi to coordinate our relief efforts, including engaging with a local reputable charity to supply our employees and their communities with some essential provisions including temporary shelters that could be immediately used in the affected area.

An Employee Donation Support Fund was set up on October 5 to allow our global employees to directly support our Indonesian colleagues through financial donations, with $8,169 being raised and matched by IPL.

Damage to our employees’ homes ranged from complete destruction to minor damage. By late October, with basic necessities restored and available, we focused on providing tent and bedding supplies to the international non-profit association, ACT, to extend our support to those in the community who were left without their homes.

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During 2018, IPF’s ‘Farm Aid’ gifted $30,000 to feed livestock on drought affected farms, with efforts planned for extension into the 2019 IPL financial year. Many other initiatives and donations to support farming communities during 2018 were also undertaken. As a key member of the Australian agricultural community, IPL encouraged our employees to support Australian farmers in 2018 by offering to match every employee dollar donated to make a real difference to those farmers and local businesses who needed a helping hand. As a result, $4,616 was donated directly to Rural Aid Ltd, which includes the ‘Buy a Bale’ campaign. The funds contributed to the purchase of fodder, and to fund aid operations, volunteers, trades and local businesses. In Mansfield, Queensland, fun and fundraising went hand in hand at the Buy a Bale High Country Ball in October. More than $110,000 was raised to feed livestock thanks to the generosity of 260 attendees and the support of the community. IPF donated a B-double truck load of SuPerfect fertiliser to the auction list which was purchased for $20,000 by a local Mansfield agricultural business. The SuPerfect fertiliser was just one of ten B-double truck loads which IPL donated to the fund-raising event in conjunction with our local dealer, Benalla Bulk Fertilizers. The remaining truckloads were offered for auction in the weeks following the ball to continue raising money for farming families doing it tough in New South Wales and southern Queensland, Australia.

Many sites also ran or participated in local activities to assist drought affected farming communities. In Victoria, employees from our Portland site raised $1,600 for Buy a Bale from their own donations. Barry Jennings from IPL Portland presented the cheque at the Royal Hotel in Portland, where a local fundraiser was held, which raised another $6,000 from the Portland community.

IPF joined forces with a regional supplier, Farm HQ in Proserpine, to drive a 12 month fundraising effort resulting in the donation of $50,000 towards the rebuilding of the historic Proserpine Show pavilion. Severely damaged by Cyclone Debbie, which also damaged other facilities at the showgrounds, the 80 year old pavilion and showgrounds are valuable assets enjoyed by the Proserpine community, not just for the annual show but for a range of local events during the year. IPF and Farm HQ set out to make a donation for every tonne of IPL fertiliser bought by local canegrowers from Farm HQ during the peak fertiliser season from July to December, with funds going to the Showgrounds Recovery Fund. IPL donated $2 per tonne of fertiliser sold. The $50,000 target was reached when Farm HQ approached their generous local cane farming and grazing customers to join the fund. Donna Rogers from Farm HQ and Noel Matthews from Incitec Pivot Fertilisers presented the cheque to Mike Porter, vice-president of the Proserpine Showgrounds Committee, before a crowd of local community members at the 2018 Proserpine Show.

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Dyno Nobel Indonesia designs and trials water filter for village employee homes To align with IPL's Value to Care for the Community & Our Environment, and our focus on treating water as a precious resource, our Dyno Nobel Delta Binungan site conducted a trial water filter project to improve the quality of water used in some of our employees homes. Many of our employees at the Dyno Nobel (PT DNX Indonesia)Binungan site live in the Pegat Bukur Village in the Berau Area, East Kalimantan, and rely on the Pegat Bukur River for water to wash and cook. After site water sample testing by Ajeng Puspita Sari, our Health Service Coordinator, revealed that turbidity and microbiology parameters were much higher than recommended, Pak Agus Rahyudi, DNX Indonesia’s Engineering & Strategic Project Manager, designed and built a water filter which was trialled during 2018. The before and after photo shows to the right show the visible difference in the water before and after filtering. “Local employees will get the benefits of this water filter once installed in their home,” said Ajeng. “They will get healthier water to use for their household needs. It’s a great idea to donate for the community also, it would be really appreciated and helpful for them.”

Case Study: IPL’s ‘My Potential’ Program encourages change through Science Week by taking STEM into local schools The IPL My Potential program has been specifically developed to support female employees to progress and thrive in their careers. During 2018, our Group 4 My Potential team in Australia piloted a plan for female employees in non-traditional roles to participate in National Science Week to increase the profile of STEM (Science, Technology, Engineering and Maths) subjects for female students in schools.

The aim was to maintain the interest of female students in science subjects throughout primary (elementary) and secondary (middle and high) school so that they do not disengage from STEM subjects as they progress in their education towards careers. The team began by emailing every female employee in a technical role across our Australian workforce with an invitation for them to consider engaging with their local school during Science Week. The manager of each female employee was also contacted to allow them to choose between discretionary effort or volunteering during work time. Involvement with a local school was promoted in line with IPL’s community engagement strategy, and also gave our employees an opportunity to promote their local sites as an employer of choice in their community.

The lessons delivered by our employees in the classroom were age appropriate and included: • ‘EGGsperiments’, which use chicken eggs to demonstrate how the properties of an object change under different pressures; • A ‘What does an agronomist do?’ lesson, which included student pH testing of soils samples brought in from home, followed by the assessment of their test results and interaction with posters to find crops that could be successfully grown in that soil, and crops that would not survive; • How to create a projector from a smart phone; • Several ‘Day in the Life of an IPL Employee’ presentations, which were made to year 10,11 and 12 female students. These demonstrated the working life of several IPL female employees who work in engineering, IT and mechanical roles.

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IPL tree planting efforts go global During 2018, many of our sites participated in Earth Day and other tree planting activities. Three sites efforts are described below.

Geelong, Australia In Geelong Australia, five employees took time out to assist Greening Australia to plant 750 trees around Limeburners Links at a community event. Limeburners Links is on Corio Bay located close to IPL's Oyster Cove and North Shore, Geelong fertiliser sites. Greening Australia aims to control weeds, collect rubbish, and deal with pest animals in the area to reduce the pressure upon the coastal saltmarsh fringe vegetation and its bird life habitats. The planting of native tree species into the existing vegetation will assist in promoting habitat for the local and migratory birds, and demonstrates Care for the Community & Our Environment.

Dinamita, Mexico 19 employees from our Dinamita, Mexico site planted 2,300 Cooperi Pines across two hectares in the Sierra De Durango to promote reforestation. Employees came from manufacturing, finance, technical services, human resources and acquisitions. The goal was to recover and preserve the natural areas that have been affected by wildfires while increasing ecological awareness. See the beautiful scenery of the El Tecuan park in the video of the tree planting day created by the employees who participated.

Dyno Nobel Indonesia Selamat Hari Menanam Pohon Indonesia (Happy Indonesian Tree Planting Day)! Employees from Dyno Nobel, Indonesia planted trees to Care for the Community and our Environment on Tree Planting Day. “DNX Indonesia not only serves customers with Best Blast performance for resources of the earth, but also we serve the earth with care,” said Wahyu Hidayat. Employees from the Lati site are pictured below.

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Case Study: A unique community engaged at Phosphate Hill

Our Phosphate Hill ammonium phosphate fertiliser plant is located in a remote area of north-west Queensland, Australia where a natural phosphate rock deposit is located. Due to it’s remote location about 140km to the south-south-east of the city of Mount Isa, which has a population of 22,000, the nearest neighbouring township is Dajarra, which has a population of just under 200 people and is 64km from the site and Monument Village employee camp. We continued to support and engage with this unique local community in 2018.

When your neighbours drop in for a cuppa – and they’ve driven a couple of hours to get to your place – it’s a special event!

Phosphate Hill’s next door neighbours, James Hacon (Buckingham Downs Station), Andrew Davey (Chatsworth Station) and Al McDonald (Brightlands Station) popped in during the year and met some of our team. The Phosphate Hill mining leases are on Chatsworth Station which is owned and managed by the McDonald family. The business runs 175,000 head of cattle on 3.36 million hectares across its 13 Queensland properties (including Chatsworth and Brightlands). The Hacon family’s Buckingham Downs Station is a ‘short’ 45 minute drive from the site on the way to Dajarra. Another grazing dynasty, the Hacons run 9 properties across western Queensland. Over a cup of tea, the group discussed service roads, flight services and camp drafts.

Dajarra school students visit Phosphate Hill Observatory

During the year our Phosphate Hill site hosted some very special guests from the Dajarra State School who visited our Observatory. The IPL Monument Village Observatory was built in 2004 and houses a Meade LX200 14 inch Schmidt-Cassegrain telescope. During the Dajarra school visit, the students were able to view the night sky at Phosphate Hill. The evening included dinner, a presentation on the telescope and a visit to the Observatory where the group looked at the stars then finished with a Creation story from the Yubulyawan clan of the Wardaman people of the Victoria River region of the Northern Territory. The Creation story centres on several constellations including the Southern Cross, the two Pointers and the Emu in the Sky.

Serving the community through the IPL Phosphate Hill Emergency Response Team

Due to the remote location of the site in the Queensland desert, the nearest available State Emergency Services (SES) response team is a minimum two hours away. For this reason, the Phosphate Hill site employs five dedicated professional Emergency Response employees and has approximately 35 volunteer employees who form the IPL Phosphate Hill Emergency Response Team. The team has responded at the request of SES agencies to multiple incidents within the district. These incidents have included a multi-trailer fuel tanker roll over, high speed light vehicle collisions/incidents, a road train fire and a rail train derailment. Due to their valuable service in the remote community, the team is expected to become members of the formal Dajarra SES unit within the Queensland Northern Region SES in 2019.

Hosting the Yulluna People’s Cultural Heritage Team

As the Traditional Owners of the land and waters on which the Phosphate Hill site and village camp are located, the Yulluna people have a special connection to the land. The preservation of artefacts and sites of cultural significance plays a critical role in maintaining this connection and educating current and future generations. During 2018 the site was honoured to host the Yulluna people’s Cultural Heritage Team to survey a section of land. A number of artefacts including chert flakes, grinding stones, hammer stones and spear tips were identified and each artefact was gathered and relocated to a Keeping Site, which is marked as a protected area to preserve the artefacts. We would like to thank the Yulluna Cultural Heritage Team for sharing their knowledge and passion for the history of the Yulluna people with us.

Supporting the 2018 Dajarra Rodeo & Camp Draft

IPL’s Phosphate Hill site has a long history of supporting the Rodeo, and after hearing how hard it was getting for the community to find volunteers for the growing event, our employees jumped at the opportunity to help out. The team worked hard at the canteen for three days, including cooking, prepping and serving food. A huge shout out to our 11 volunteers, and our contracting partners ESS and Coates Hire who also supported the event. The volunteers were all tired and covered in dust by the end of the Rodeo, but enjoyed both the event and, most importantly, supporting this important local community event.

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interactive online report.

Visit the website to access

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NAIDOC (National Aborigines and Islanders Day Observance Committee) Week was held from 8 to 15 July with the 2018 theme Because of Her, we can! The theme was chosen to celebrate the many Aboriginal and Torres Strait Islander women who were, and are, leaders, trailblazers, politicians, activists and social change advocates who fought and continue to fight, for justice, equal rights, rights to country, access to education, employment and to maintain and celebrate traditional culture, language, music and art. These women did so while caring for families, maintaining homes and breaking down cultural and institutionalised barriers and gender stereotypes, and are paving the way for generations to come. NAIDOC Week is a great opportunity for all Australians to participate in a range of activities and to support and connect with our local Aboriginal and Torres Strait Islander communities.

This year IPL promoted NAIDOC Week to our employees in the form of an online quiz designed to help increase the cultural capability of our employees. The prize was an IPL Dyno Nobel dual branded polo shirt as pictured. In addition, everyone who participated in the quiz was included in a draw to win 1 of 20 additional polo shirts. Employees were also encouraged to engage in NAIDOC activities across Australia where they live and work by contacting their Local Traditional Owner Group, Council, Chamber of Commerce or School for information.

As part of IPL’s support for National Reconciliation Week 2018, Australian employees were encouraged to support the Indigenous Literacy Foundation (ILF).

ILF is an initiative of the Australian Book Industry and is a not-for-profit charity which aims to reduce the educational disadvantage experienced by some children in very remote indigenous communities across Australia. ILF’s programs focus on creating a special relationship with reading from an early age through free books, some of which are in First Languages, and through publishing stories from communities. National Reconciliation Week ran from 27 May – 3 June in 2018. These dates mark two milestones in Australia’s reconciliation journey; the 1967 referendum and the historic Mabo decision, respectively. As these significant milestones were commemorated during National Reconciliation Week, IPL employees were asked to consider donating to the ILF through an Everyday Hero fundraising page set up for them, as well as being encouraged to learn more about the history of Indigenous Australia through the 2018 theme ‘Don’t Keep History A Mystery: Learn. Share. Grow’. The IPL Reconciliation Action Plan (RAP) sets out the actions that guide our organisation to work in partnership with Aboriginal and Torres Strait Islander Peoples to help progress reconciliation.

At IPL, we are committed to engaging and partnering with our Australian Aboriginal and Torres Strait Islander communities. NAIDOC Week celebrates the history, culture and achievements of Australian Aboriginal and Torres Strait Islander peoples and is celebrated not only in Indigenous communities, but by Australians from all walks of life.

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Community Safety Community

IPL SUSTAINABILITY REPORT 2018 COMMUNITY

� Community

Engagement

Community

This report is published as an interactive online report. Visit the website to access online features at www.incitecpivot.com.au/sustainability

> Community

Investment

> Social Return on

Investment

(SROI)

Due to the nature of industrial and agricultural chemicals, our operations have the potential to impact on local communities. IPL has measures in place to monitor, manage and prevent potential negative impacts on local communities which may arise. Due to the nature of our business, many sites are required by law to communicate regularly with the community regarding Community Safety Plans which describe the emergency procedures that should be followed to keep them safe in the unlikely event of a potential incident. In addition, potential impacts are also assessed and addressed. For example, where there is any risk of the release of fumes associated with ammonia, purpose built gas detectors are used. These are permanently located near the perimeters of sites that have ammonia storage tanks, ensuring that any potential leaks can be responded to. The detectors set off an alarm to response teams at any time of the day or night if gas is detected. In North America, 53% of IPL’s sites handle materials at locations which have the potential to impact on local community safety and are required to communicate with first responders in the community. Many of these sites are required to actively participate on Local Emergency Planning Committees (LEPCs) as part of the Emergency Planning and Community Right-to-Know Act (EPCRA). For example, our Cheyenne, Wyoming manufacturing site in the USA participates in the Mutual Aid Emergency Response Group along with the local Fire Department, Holly Frontier Refining and Warren Air Force Base. LEPC membership must include (at a minimum): • Elected state and local officials • Police, fire, civil defense, and public health officials • IPL facility representatives • Environment, transportation and hospital officials • Representatives from community groups and the media LEPCs measure their effectiveness against the EPA recommended guideline ‘Measuring Progress in Chemical Safety: A Guide for Local Emergency Planning Committees and Similar Groups’. In the Asia Pacific region, 21% of sites have been identified as either ‘Major Hazard Facilities’ or sites which are required to provide specialised communications to their communities regarding safety. These sites follow ‘Safe Work Australia’ guidelines and local regulations in developing emergency plans, establishing and evaluating a Safety Management System, and creating and distributing communications to their communities. Major Hazard Facilities must provide the local community (and the local authority in which the facility and surrounding area is located) with information about the facility, its operations, how the community will be notified if a major incident occurs and what the community should do if a major incident occurs. Copies of the Emergency Response Plans must be lodged with regulatory agencies, and information in relation to the site’s activities and emergency response is provided to local libraries. A 24 hour emergency contact number must be displayed at each facility, and the name of a contact person provided, from whom information may be obtained, and with whom concerns can be raised. We also publish IPL Community Safety Reports on our website to provide information and advice for neighbours of our facilities who may be impacted by our activities. In addition, IPL has a continuous improvement management approach in response to incidents such as gas sensor alarm responses and the IPL Issues Response Manual assists crisis management teams to effectively manage communication and engagement in the event of an incident.

� Community

Safety

� Material issue

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Community Investment Community

IPL SUSTAINABILITY REPORT 2018 COMMUNITY

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Engagement

Community Through our Community Investment Framework we are able to deliver long-term sustainable growth for our businesses and ensure the long-term health and vitality of our local communities. The Framework, implemented during 2013, has been one of the key outcomes of our Sustainability Strategy. It has been established to help us to build meaningful community relationships and has enabled us to further support our people in their endeavours to make a difference within their local communities. The framework sets minimum standards all businesses and sites within the Group are required to uphold when administering community programs and spend, ensuring funds are issued consistently and fairly across our operations. Importantly, the Framework preferences local approaches, enabling each IPL business and site to respond to the distinct needs of their communities.

IPL’s Community Investment Framework directs that all community investments are issued in accordance with our ‘Principles for Giving’. These Principles have been endorsed by the Executive Team and ensure we have a strategic and consistent approach to community giving across the Group.

The Principles for Giving ensure that we: • Support activities that provide solutions to local challenges and opportunities in the communities around our operations and where our employees live. • Place a strong emphasis on supporting initiatives that help local organisations develop the skills and resources to bring positive and lasting benefits to the community. • Provide funding to initiatives that are aligned to IPL’s Values and business strategy, and are integral to the long-term sustainability of the communities where we operate.

Our areas of focus are: • Education – providing support for childhood, adult and indigenous specific education activities; • Health – providing support for activities working towards better physical and mental health; • Community Development – providing support for activities that enrich community life and enhance the social, environmental and economic sustainability of local communities.

Dollar for Dollar Program Our Dollar for Dollar program, a key component of our Community Investment Framework, matches employee donations and fundraising efforts that are aligned to our Principles for Giving to a total of A$2000 per initiative. See examples of this fund at work under Community Engagement.

Workplace Giving Australian employees are offered a voluntary Workplace Giving scheme whereby they can donate to one or more of the company’s nominated not-for-profit charities. The process is simple and streamlined, it offers a choice to employees as to how their contributions are directed, and allows them to influence where some of IPL’s community giving is focused: IPL has readily, and for a considerable number of years, embraced Workplace Giving matching to a level of $20,000 for each financial year.

Measuring community investment During 2018, $467,343 of community investment was made globally through IPL’s Dollar-for-Dollar program, the Australian Workplace Giving program and various site-based initiatives. 100 percent of both local and Group donations were made in line with our Principles for Giving, with approximately 24 percent going to health initiatives (including sport), 10 percent going to education and 66 percent to local community development, which includes disaster relief.

Our total community investment increased by more than 20 percent since last year, and included $30,000 raised to feed livestock on drought affected farms in Australia. IPF’s ‘Farm Aid’ efforts will continue beyond 30 September 2018 into the 2019 IPL financial year.

This report is published as an interactive online report. Visit the website to access online features at www.incitecpivot.com.au/sustainability

> Community

Investment

> Social Return on

Investment

(SROI)

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Safety

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Social Return on Investment Metrics Community

IPL SUSTAINABILITY REPORT 2018 COMMUNITY

� Community

Engagement

Community More than ever, people want to know how the work they are doing on a daily basis is contributing to the world. At IPL, we recognise that in addition to creating economic value, the social value that we create as a company is also important. With the completion of our new US$815 million Waggaman, Louisiana Ammonia Plant at the beginning of the IPL 2017 financial year, we worked with Louisiana Economic Development and engaged a third party to assist us in the development of a Social Return on Investment (SROI) metric to help us quantify and communicate the value of our social contribution relative to our financial investment in the new plant. SROI is a principles-based method for measuring the extra-financial value created by companies through investments, such as the development of the Louisiana Ammonia Plant. Built on a brownfield site, the development required no land clearing and created 65 above-average wage positions and 466 flow-on positions (which were valued at average wage). The SROI estimated that for every dollar IPL invested in the plant, US$3.40 of social value has been created in the local community. We also created two other SROI metrics. The first valued the social contribution made to the community by the reduction in injury rates as a result of our investment in safety training during the first two years of our 5 year global safety strategy. The second valued the social contribution made through our supply of fertiliser for food production in Bangladesh during 2016. The results of our three SROI metrics are presented below and linked to the relevant United Nations Sustainable Development Goal.

> Community

Investment

> Social Return on

Investment

(SROI)

This report is published as an interactive online report. Visit the website to access online features at www.incitecpivot.com.au/sustainability

� Community

Safety